Investor Relations

Investor Relations Snapshot

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Third Quarter 2017

Business Highlights

Total revenue of $666 million, flat on a sequential basis, an approximately 2 percent year-over-year decline
Technology revenue up 10 percent year over year to $91 million
Services revenue of $576 million, a 4 percent year-over-year decline; Services operating profit margin of 3 percent, a 480 basis point sequential improvement and a 60 basis point year-over-year improvement
Operating profit margin of (4) percent, relative to (1) percent in the prior-year period; non-GAAP operating profit margin of 7.3 percent, up 370 basis points sequentially and up 60 basis points year over year
Services backlog up 1 percent sequentially at $3.7 billion

* For complete results, disclosures and definitions, see the 3Q17 Earnings Release and Slides.

Condensed Consolidated Statements of Income (Unaudited)

Three Months Ended
September 30

Nine Months Ended
September 30

2017

2016

% Change

2017

2016

% Change

Revenue

666.3

683.3

(2.5%)

1,997.0

2,099.0

(4.9%)

Cost of revenue

580.2

561.7

3.3%

1,688.2

1,700.6

(0.7%)

Selling, general and administrative

102.3

120.0

(14.8%)

325.6

345.8

(5.8%)

Research and development

10.8

11.4

(5.3%)

37.7

40.5

(6.9%)

Operating profit (loss)

(27.0)

(9.8)

(54.5)

12.1

Interest expense

16.4

7.7

113.0%

36.4

19.9

82.9%

Other income (expense), net

3.0

2.3

30.4%

(8.6)

3.7

Income (loss) before income taxes

(40.4)

(15.2)

(99.5)

(4.1)

Provision for (benefit of) income taxes

12.5

9.9

26.3%

21.6

34.2

(36.8%)

Consolidated net income (loss)

(52.9)

(25.1)

(121.1)

(38.3)

Net income attributable to non-controlling interests

(11.8)

3.1

(5.3)

8.2

Net income (loss) attributable to Unisys Corporation

(41.1)

(28.2)

(115.8)

(46.5)

Earnings (loss) per common share (Diluted)

($0.81)

($0.56)

(2.30)

(0.93)

Diluted shares for per share computation (thousands)

50,471

50,082

0.8%

50,388

50,052

0.7%

Condensed Consolidated Balance Sheets (Unaudited)

September 30

% Change

2017

2016⁽¹⁾

Cash and cash equivalents

598.7

442.7

35.2%

Accounts and notes receivable, net

511.8

532.5

(3.9%)

Inventories

32.8

39.5

(16.9%)

Prepaid expense and other current assets

118.8

119.0

(0.1%)

Total current assets

1,262.1

1,133.7

11.3%

Properties, net

148.7

143.0

4.0%

Outsourcing assets, net

190.6

183.0

4.1%

Marketable software, net

136.4

137.7

(0.9%)

Prepaid postretirement assets

47.9

79.3

(39.6%)

Deferred income taxes

150.8

117.5

28.3%

Goodwill

181.2

180.1

0.6%

Restricted cash

21.3

33.5

(36.5%)

Other long-term assets

157.9

168.3

(6.2%)

Total non-current assets

1,034.8

1,042.4

(0.7%)

Total assets

2,296.9

2,176.1

5.6%

Current maturities of long-term debt

11.3

220.4

(94.9%)

Accounts payable

195.5

175.5

11.4%

Deferred revenue

326.9

318.8

2.5%

Other accrued liabilities

387.8

353.2

9.8%

Total current liabilities

921.5

1,067.9

(13.7%)

Long-term debt

631.5

201.2

213.8%

Long-term postretirement liabilities

2,195.2

1,943.9

12.9%

Long-term deferred revenue

108.3

142.2

(23.8%)

Other long-term liabilities

90.3

79.0

14.3%

Total non-current liabilities

3,025.3

2,366.3

27.9%

Total deficit

(1,649.9)

(1,258.1)

31.1%

Total liabilities and equity

2,296.9

2,176.1

5.6%

Condensed Consolidated Statements of Cash Flows (Unaudited)

Nine Months Ended September 30

2017

2016⁽¹⁾

Net cash provided by operating activities

(36.3)

103.0

Proceeds from/purchases of investments, net

30.7

(24.3)

Investment in marketable software

(46.6)

(47.1)

Capital additions of properties

(21.8)

(18.3)

Capital additions of outsourcing assets

(60.1)

(41.4)

Other

(0.8)

Net cash used for investing activities

(98.6)

(131.9)

Proceeds from issuance of long-term debt

445.0

213.5

Payments of capped call transaction

0.0

(27.3)

Issuance costs relating to long-term debt

(12.1)

(7.3)

Payments of long-term debt

(98.4)

(2.1)

Net payments of short-term borrowing

0.0

(65.8)

Other

0.2

(0.4)

Net cash provided by (used for) financing activities

334.7

110.6

Effect of exchange rate changes on cash and cash equivalents

19.1

(2.3)

Increase (decrease) in cash, cash equivalents & restricted cash

218.9

79.4

Cash, cash equivalents & restricted cash, beginning of period

401.1

396.8

Cash, cash equivalents & restricted cash, end of period

620.0

476.2

⁽¹⁾Certain amounts have been reclassified to conform with the 2017 presentation

3Q17 Revenue Profile ($M)

2Q16 Profile

Segment

3Q17

3Q16

Change

In Constant Currency

Services

$575.5

$600.9

($25.4)

(4.2%)

(5.4%)

Technology

$90.8

$82.4

$8.4

10.2%

9.9%

Total

$666.3

$683.3

($17.0)

(2.5%)

(3.5%)

Segment Detail

3Q17

3Q16

Change

In Constant Currency

Cloud & Infrastructure Services

$321.2

$341.9

($20.7)

(6.1%)

(7.4%)

Application Services

$206.4

$210.4

($4.0)

(1.9%)

(3.0%)

BPO Services

$47.9

$48.6

($0.7)

(1.4%)

(0.4%)

Technology

$90.8

$82.4

$8.4

10.2%

9.9%

Total

$666.3

$683.3

($17.0)

(2.5%)

(3.5%)

Geography

3Q17

3Q16

Change

In Constant Currency

U.S.& Canada

$320.5

$357.4

($36.9)

(10.3%)

International

$345.8

$325.9

$19.9

6.1%

4.1%

Total

$666.3

$683.3

($17.0)

(2.5%)

(3.5%)

Regional Detail

3Q17

3Q16

Change

In Constant Currency

U.S. & Canada

$320.5

$357.4

($36.9)

(10.3%)

EMEA

$172.0

$183.0

($11.0)

(6.0%)

(8.6%)

Asia Pacific

$86.2

$80.3

$5.9

7.4%

5.5%

Latin America

$87.6

$62.6

$25.0

39.9%

37.6%

Total

$666.3

$683.3

($17.0)

(2.5%)

(3.5%)

Sector

3Q17

3Q16

Change

In Constant Currency

Enterprise Solutions

$525.1

$544.0

($18.9)

(3.5%)

(4.8%)

U.S. Federal

$141.2

$139.3

$1.9

1.3%

Total

$666.3

$683.3

($17.0)

(2.5%)

(3.5%)

Sector Detail

3Q17

3Q16

Change

In Constant Currency

U.S. Federal

$141.2

$139.3

$1.9

1.3%

Public

$164.2

$187.9

($23.7)

(12.6%)

(14.1%)

Commercial

$213.7

$0.0

0.0%

(1.8%)

Financial

$147.2

$142.4

$4.8

3.4%

3.3%

Total

$666.3

$683.3

($17.0)

(2.5%)

(3.5%)

Revenue Type

3Q17

3Q16

Change

Recurring Services

$454.6

$468.0

($13.4)

(2.9%)

Non-Recurring Services

$120.9

$132.9

($12.0)

(9.0%)

Technology

$90.8

$82.4

$8.4

10.2%

Total

$666.3

$683.3

($17.0)

(2.5%)

9Mos17 Revenue Profile ($M)

2Q16 Profile

Segment

9Mos17

9Mos16

Change

In Constant Currency

Services

$1,735.6

$1,809.8

($74.2)

(4.1%)

(4.0%)

Technology

$261.4

$289.2

($27.8)

(9.6%)

(9.0%)

Total

$1,997.0

$2,099.0

($102.0)

(4.9%)

(4.7%)

Segment Detail

9Mos17

9Mos16

Change

In Constant Currency

Cloud & Infrastructure Services

$983.4

$1,017.8

($34.4)

(3.4%)

(3.9%)

Application Services

$604.3

$641.4

($37.1)

(5.8%)

(6.1%)

BPO Services

$147.9

$150.6

($2.7)

(1.8%)

4.6%

Technology

$261.4

$289.2

($27.8)

(9.6%)

(9.0%)

Total

$1,997.0

$2,099.0

($102.0)

(4.9%)

(4.7%)

Geography

9Mos17

9Mos16

Change

In Constant Currency

U.S.& Canada

$978.1

$1,051.9

($73.8)

(7.0%)

International

$1,018.9

$1,047.1

($28.2)

(2.7%)

(2.4%)

Total

$1,997.0

$2,099.0

($102.0)

(4.9%)

(4.7%)

Regional Detail

9Mos17

9Mos16

Change

In Constant Currency

U.S. & Canada

$978.1

$1,051.9

($73.8)

(7.0%)

EMEA

$550.4

$599.3

($48.9)

(8.2%)

(4.6%)

Asia Pacific

$253.1

$261.7

($8.6)

(3.3%)

(4.7%)

Latin America

$215.4

$186.1

$29.3

15.7%

6.8%

Total

$1,997.0

$2,099.0

($102.0)

(4.9%)

(4.7%)

Sector

9Mos17

9Mos16

Change

In Constant Currency

Enterprise Solutions

$1,571.0

$1,669.4

($98.4)

(5.9%)

(5.7%)

U.S. Federal

$426.0

$429.6

($3.6)

(0.8%)

Total

$1,997.0

$2,099.0

($102.0)

(4.9%)

(4.7%)

Sector Detail

9Mos17

9Mos16

Change

In Constant Currency

U.S. Federal

$426.0

$429.6

($3.6)

(0.8%)

Public Sector

$488.6

$526.2

($37.6)

(7.2%)

(7.5%)

Commercial

$613.8

$629.9

($16.1)

(2.6%)

(3.2%)

Financial

$468.6

$513.3

($44.7)

(8.7%)

(7.2%)

Total

$1,997.0

$2,099.0

($102.0)

(4.9%)

(4.7%)

Revenue Type

9Mos17

9Mos16

Change

Recurring Services

$1,368.1

$1,420.0

($51.9)

(3.7%)

Non-Recurring Services

$367.5

$389.8

($22.3)

(5.7%)

Technology

$261.4

$289.2

($27.8)

(9.6%)

Total

$1,997.0

$2,099.0

($102.0)

(4.9%)

Selected Grantor Information